Flood Damage Underestimated; Better Risk Prevention Needed: Allianz

Floods are the most commonly occurring natural catastrophes in the world and insurance companies are using science to better predict risks, yet most people underestimate flooding’s destructive power, German insurer Allianz said in a report.

“In 2010, the international disaster database EM-DAT counted roughly 400 natural catastrophes with at least 100 people affected or 10 deaths,” the October report said.

Nearly half of those catastrophes were floods, affecting 179 million people all over the world.

In January, floods that devastated the Australian state of Queensland amounted to $364 million in insurance claims, according to the Insurance Council of Australia.

“More and more natural drainage areas are being sealed off, for instance, by road-building,” said Markus Stowasser, Allianz SE Reinsurance. “On top of that, ever more housing developments are going on near rivers.”